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Overage in Quotes
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Last modified on 2/23/2012 2:58 PM by User.

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Overage in Quotes

Overview

Our customers tell us that sometimes overage is the difference between a successful agency and a closed business. For this reason, OASIS has a number of rules built in that protect overage values as much as possible. However, you must properly label each overage value for these rules to take effect.

This document shows the user how to identify overage on a quote and the rules OASIS uses to protect this information, and (most importantly) help you run scenarios that will maximize your profit on the project!

The Overage Line – Keeping it Simple

The most basic method for adding overage to a job is to type “Overage” in the “Code” column of OASIS, on a blank line and type the amount of the overage in the Sell Price column. This tells OASIS that the line is overage and should never be shown to the customer in any way. Additionally, OASIS will force the printed bill of material to not show UNIT and Extended prices to ensure your customer does not use a little math to discover your overage.

The overage line does not have to be assigned to a manufacturer during the quotation process. This allows you to lock in the job at a given price and then later work a scenario to identify the best manufacturer for the overage – thereby maximizing your profit!

Please note that if you mark up the Sell Price (say by 10% long), placing the result in L1, L2 or L3, the overage value will be marked up at the same rate (the 10% long) and placed into the appropriate column.  

No unit or extended pricing shows on the printed quote, as it is protecting your Overage. Only Grand Totals are shown.

 

Overage Per Fixture line – using the OBase & OBase Comm columns

The OBase column in OASIS is a very powerful feature – yet one some struggle with. Quite simply, the “OBase” column is the price at which the manufacturer begins paying overage. The “OBase Comm” column is the percent of commission the manufacturer pays at that price, and “% Overage” is the rate or split paid by the manufacturer. Example below is a 75/25 split with the manufacturer.

OBase – price at which the manufacturer starts paying overage

OBase Commission – commission paid at the OBase price.

One advantage of applying overage to each fixture on a bill of material is that you are then able to print the unit and extended prices (which include the amount of the overage).

When fully configured (**using a price list), OASIS will automatically fill in the OBase values, allowing the quoter to work scenarios where the marking on any given line is more (or less) than another. The goal: MAXIMIZE AGENCY PROFIT!

Example #1 – No Overage

 Price:      

$45.00

Comm:  

$1.35

Over:   

$0.00

Markup:  

$0.00

Earn:    

$1.35

Rate:   

3%

 

BQty

Type

Part (note)

OBase

OBase Comm

%Overage

Sell Price

Sell Comm

1

AA

NO OVERAGE

$50.00

7%

75.00%

$45.00

3%

  NOTE: Please make a habit of keying a price AND commission together in a quote! 

Example #2 – No Overage (Sell price equals OBase)

Price: 

$50.00

Comm:

$3.50

Over:    

$0.00

Markup: 

$0.00

Earn:   

$3.50

Rate: 

7%

 

BQty

Type

Part (note)

OBase

OBase Comm

%Overage

Sell Price

Sell Comm

1

AA

NO OVERAGE

$50.00

7%

75.00%

$50.00

7%

  NOTE: Please make a habit of keying a price AND commission together in a quote! 

Example #3 – Overage is Auto Calculated!

Price:    

$75.00

Comm:   

$3.50

Over: 

$15.00

Markup: 

$0.00

Earn: 

$18.50

Rate:   

26%

 

BQty

Type

Part (note)

OBase

OBase Comm

%Overage

Sell Price

Sell Comm

1

AA

OVERAGE

$50.00

7%

75.00%

$70.00

{26%}

  NOTE: Please make a habit of keying a price AND commission together in a quote!

      (Although, in this case, OASIS will use the OBASE commission rate.)

 NOTE: OASIS will block the Sell Comm column and show the gross commission or total “rate of return” in Sell Comm column (as denoted by the brackets)

Example #4 – Overage is Auto Calculated – Even when “marked up”!

 

Price:   

$75.00

$77.78

Comm: 

$3.50 

$3.50

Over:   

$15.00  

$20.84

Markup:  

$0.00    

$0.00

Earn: 

$18.50

$24.34

Rate:    

26% 

31%

 

BQty

Part (note)

OBase

OBaseC

%Overage

SellPrice

SellC

#%L1

L1

L1Comm

1

OVERAGE

$50.00

7%

75.00%

$70.00

{26%}

10

$77.78

{31%}

Printed Quotes

Overage lines are never printed on customer copies of the quote. Additionally, unit and extended prices are not printed when overage lines are used as your customer could easily figure out the amount of the overage.

To print UNIT or Extended prices, you will need to use the OBase column (as described above). Using OBase will allow OASIS to accurately calculate overage and print unit and extended prices.

 Project Status Reports

Overage lines are NEVER printed on project status or web reports.

 Order Conversion

Before allowing an order conversion, OASIS will first require all overage lines to be assigned to a manufacturer. During order creation, the overage is copied to the specified manufacturer order.

When using OBase, the overage is resolved (separate from commission) and copied into the appropriate field of the order.

In all cases, the overage split on the quote line is copied to the order line. This ensures the order is correct for manufacturers that have multiple overage policies.

**Price Lookup – Automating OBase!

Within the price list editor, one column of price may be marked as “Overageable”. This column is copied directly into the quote every time the part is copied into a quote. This allows the quoter to focus effort on maximizing job profits.